News Digest:

Hedge funds must focus on data to adapt to a rapidly changing financial landscape. Market volatility, evolving investor expectations, geopolitical risks, and stricter regulatory scrutiny are driving the need for diversification beyond simple equity-based strategies.

According to Hedge Fund Research, the share of equity-focused hedge funds declined from 60% in 2015 to 45% in 2023. Simultaneously, multi-strategy funds surged, with a Barclay Hedge survey reporting an increase from 20% in 2010 to over 35% in 2022.

This shift underscores the growing reliance on data-driven insights. Hedge fund managers are turning to external data providers to navigate these challenges and identify actionable strategies. While they recognize the importance of data, many still struggle to fully integrate it into their decision-making processes.

Speaking at a panel discussion—Servicing Multi-Asset Funds—at the recent InvestOps conference in London. SS&C’s Global Head for Middle Office Outsourcing, Marcela Crossman said “The only way you are going to be able to automate a process or make the most out of AI is if you have solid data. Before firms can even think about approaching robotics and AI, they need to get their data right,” she advised.

In a complex investment environment, data has become the key to unlocking success, helping hedge funds diversify and optimize returns across multiple asset classes.

End Notes

Source: https://www.ssctech.com/blog/data-is-the-key-to-success-for-hedge-funds